DEVELOPMENT-LESOTHO: Pension System Works, Despite IMF Scepticism

Ernest Chiombe

MASERU, Nov 3 2006 (IPS) – Twenty dollars seems a meagre amount, but it has brought an end to backbreaking toil and food insecurity for many of Lesotho s elderly.
Two years ago the government of the small landlocked country started a pension system for citizens over the age of 70. Today, more than 76, 000 people are receiving a monthly pension of approximately 20 dollars.

Whereas such steps in Southern Africa are frequently taken at the behest of donors or the international financial institutions, Lesotho s government introduced the grant in order to address worsening poverty among the elderly.

Lesotho, geographically encircled by South Africa, is home to 1.8 million people of whom 56 percent live on less than two dollars per day. The World Food Programme is supporting Lesotho through distribution of free food, as 26 percent of the population is malnourished.

Lesotho s HIV/AIDS prevalence rate is around 25 percent, affecting mostly people who are in the productive age groups. This leaves old people with the task of caring for their orphaned grandchildren, many of whom are suffering from HIV/AIDS or malnutrition.

The non-governmental Southern African Regional Poverty Network has published a report stating that the International Monetary Fund (IMF) was sceptical about the pension plan s affordability.
However, the Lesotho government forged ahead, starting off cautiously with a high threshold age to contain costs. In South Africa, Botswana and Namibia the age of eligibility for pensions is between 60 and 65.

Since the introduction of the pension, 82-year-old Malintle Mashaile from the northern town of Hlotse in Leribe district is able to feed not only herself, but to provide for her sickly 46-year-old son without labouring like before.

I used to move from house to house, washing people s clothes. They paid me 10 to 20 maloti for food (about 1.3 to 2.6 dollars). At my age, my energy is depleted. I could not do much work. Life was becoming unbearable.

Now I no longer work for people. I am more relaxed because I know that every month I get an income, she beams.

Still, the amount is not enough to cover all her and her son s needs. For 20 dollars, Mashaile can only buy a 12.5 kg bag of maize meal, two kg of sugar, a small box of tea, one kg of salt, five lt of milk, 500 g washing powder and five bars of bathing soap. A little change is left which she uses to buy other condiments.

I don t have any money left to spend on health care for me or my son. Prices of things have been going up. I wish the government could increase the pension to 300 maloti (40 dollars), she laments.

Her sentiments are echoed by 75-year-old Mapontso Petlane who lives with her three school-going grandchildren in Ramapepe village, 26 km east of Hlotse. I am too old to have energy for growing crops to feed my grandchildren, she says.

A 12.5 kg bag of maize meal is not enough, despite the children receiving some of their meals at school. She spends the money on 25 kg of maize meal, five lt of paraffin, matches, soap, and salt. What is left is kept for the children s school requirements, like school trips which are not included in the otherwise free primary education.

The money is too little. I cannot even to talk about buying condiments. However, I do appreciate this pension because I do not know anybody who can freely give you such an amount.

I used to work in other people s fields and be paid with a 50 kg bag of maize meal that did not even last two months, says Mapontso.

For grocery shop owner Mamoshene Hlongwane the pension system has changed villagers lives because fewer are asking for credit at my shop. Even when they ask, I am now assured of repayment.

Households which receive more than one pension have been able to invest in assets to improve their livelihoods. Hlongwane knows of an elderly couple whose combined pensions of about 40 dollars have enabled them to hire tractors to cultivate their fields, and to buy seed and fertilizer.

Chief Mohale Letete of the Leribe district concurs that people s lives have been improved. Many old people are no longer begging, and have been lifted out of destitution.

But he also adds his voice to the calls for an increase in the amount. The costs of food, transport, clothing and health care warrant the doubling of the pension. The government should also consider reducing the age limit to 60 years in order for more people to benefit, given that life expectancy is lower than before.

Government officials are aware of the need to review the pension, and plans are afoot to lower the age of eligibility to 65.

Another challenge is the payment system. Administrative and logistical problems have been experienced. According to Motebang Rasiile, who works at Maputsoe Postmaster which handles payments to about 3,000 pensioners, some names go missing from the payment schedules.

Then you have to explain this to the old people before referring them back to their local district administrator s office for re-registration. We also do not have shelters where the elderly can wait on days when it is raining or very cold, or on hot days.

Alert officials have detected attempts at corruption. Some people try to cheat. Sometimes when a beneficiary dies, dependants who are aware that they are only entitled to one month s pension after the death do not inform us about such deaths. They continue to receive money with the help of some local chiefs, says Rasiile.

Officials at the Leribe district administrator s office confirm having received such reports. The district administrator is also aware that some people have obtained passports with false birth dates to qualify for pensions, says Maisepo Ntomane, who is responsible for registrations at the office.

Letters will go out to alert chiefs to malpractices and request them to hold meetings in order to warn people. However, Chief Letete blames such alleged malpractices on inefficiencies in some offices.

Local chiefs are required to send monthly notices to their principal chiefs and to the district administrator s office. Those notices indicate the names of people who have died. The pension department could easily verify who has died during a certain period of time.

Moreover, local chiefs have updated voters registers where they can check the ages of people. However, I cannot speak for everyone. It remains important for chiefs to continue receiving training to learn how to cope with modern democratic developments such as pension disbursement, says Letete.

 

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *